Tariff tensions and creative solutions: Rethinking Sri Lanka’s export future

US President Donald Trump imposed a 44% tariff on Sri Lankan goods, citing it as a reciprocal measure to the 88% in taxes and trade barriers imposed by Sri Lanka on US products (Anyway again US President announced that he is suspending the ‘reciprocal’ tariffs imposed on Sri Lanka and several other countries).

- By Dr. Nalin Abeysekera

The United States remained Sri Lanka’s top export destination for many years. And also Sri Lanka, which depends significantly on apparel exports to the US, was severely impacted by a steep 44% tariff.

I think the time has come for Sri Lanka to have a paradigm shift in the economy. In Sri Lanka, we continue to focus on traditional exports such as tea, rubber, coconut, and garments. However, to stay competitive in the global market, we need to think beyond the conventional and explore innovative approaches—even if it means pushing our resources to their full potential. It is being years that we discuss about ‘creative economy’ which can be used as a new strategy for the country in order to achieve sustainable economic development.

Creative economy

John Howkins, the author of ‘The Creative Economy: How People Make Money from Ideas,’ creative industry refers to a range of economic activities that are concerned with the generation or exploitation of knowledge and information. Howkins divides the creative economy into 15 sectors, which are: 1) Advertising; 2) Architecture; 3) Art; 4) Crafts; 5) Design; 6) Fashion; 7) Film; 8) Music; 9) Performing Arts; 10) Publishing; 11) Research and Development; 12) Software; 13) Toys and Games; 14) TV and Radio; 15) Video Games.